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Stealthgas 2020 results

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Stealthgas 2020 results

Harry Vafias

STEALTHGAS INC. REPORTS TWELVE MONTHS ENDED DECEMBER 31, 2020 FINANCIAL AND OPERATING RESULTS

ATHENS, GREECE, February 25, 2021. STEALTHGAS INC. (NASDAQ: GASS), a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today its unaudited financial and operating results for the twelve months ended December 31, 2020.

OPERATIONAL AND FINANCIAL HIGHLIGHTS[1]

  • Fleet utilization of 98.5% with 60 days of technical off hire mainly as a result of two drydockings completed within Q4 2020.
  • Fleet operational utilization of 93.6% mainly due to a number of our ships having a presence in the spot market – equivalent to 28.7% of calendar days.
  • Fleet calendar days, down by 2% quarter over quarter to 3,873 – the decrease attributable mostly to our strategic fleet contraction.
  • About 50% of fleet days secured on period charters for the remainder of 2021 (74% for Q1 21’), with total fleet employment days for all subsequent periods (up until June 2024), generating approximately $81 million in contracted revenues. Including the JV time charters, total secured revenues amount to $92 million.
  • Delivery of a 11,000 cbm newbuilding LPG vessel, the Eco Blizzard, on February 5, 2021 – thus completing our capital expenditure schedule.
  • Sale of our oldest vessel the Gas Pasha (1995 built) on December 7, 2020 for further trading.
  • Following our recent S&P activity, our average LPG fleet age (including our JV vessels) is 9 years.
  • Voyage revenues of $37.3 million in Q4 ’20, an increase of $2.1 million compared to Q4 ’19 mostly due to a 50% reduction of bareboat activity where generated revenue is inherently lower and an increase of time charter revenues stemming from our larger LPG vessels.
  • Net loss of $0.7 million in Q4 20’ corresponding to a net loss per share of $0.02 compared to net income of $0.5 million in Q4 ’19 corresponding to an EPS of $0.01.
  • Adjusted EBITDA of $13.7 million in Q4 20’ compared to $15.1 million in Q4 ’19.
  • Low gearing, as debt to assets stands at 37.3%, and quarter- over- quarter reduction in finance costs by $1.4 million.
  • Total cash, including restricted cash, of $53.0 million as of December 31, 2020 – increased compared to the previous quarter end following the post-delivery financing of the LPG newbuilding Eco Alice.
  • Adjusted net income of  $1.1 million for Q4 20’ corresponding to an Adjusted EPS of $0.03 while for the year 2020 our Adjusted net income was $16.9 million corresponding to an Adjusted EPS of $0.44 – a  good performance given difficult market conditions.

Twelve Months 2020 Results:

  • Revenues for the twelve months ended December 31, 2020 amounted to $145.0 million, an increase of $0.7 million, or 0.5%, compared to revenues of $144.3 million for the twelve months ended December 31, 2019, due to higher revenues stemming from our time charter contracts along with a  reduction of our bareboat activity, partially offset by the reduction of our fleet calendar days by 6.3% and the significant reduction in the calendar days of our charter-in vessels.
  • Voyage expenses and vessels’ operating expenses for the twelve months ended December 31, 2020 were $14.1 million and $53.3 million, respectively, compared to $17.0 million and $49.6 million for the twelve months ended December 31, 2019. The $2.9 million decrease in voyage expenses is mostly attributed to the 18.7% reduction in bunker costs  due to low prevailing oil prices. The $3.7 million increase in vessels’ operating expenses is mostly due to fewer vessels on bareboat and increased crew costs faced due to the COVID-19 pandemic.
  • Drydocking costs for the twelve months ended December 31, 2020 and 2019 were $3.6 million and $1.1 million, respectively. The costs for the twelve months ended December 31, 2020 mainly related to the drydocking of seven  vessels, while the costs for the same period of last year related to the docking survey of one small LPG and the drydocking of two LPG vessels.
  •  General and Administrative expenses for the twelve months ended December 31, 2020 amounted to $2.3 million compared to $3.7 million for the same period of last year. This decrease is mainly attributed to the fact that for the twelve months ended December 31, 2019 share based compensation expense was incurred, which was not the case for the twelve months ended December 31, 2020 since all the shares awarded under our equity compensation plan vested in August 2019.
  • Depreciation for the twelve months ended December 31, 2020, was $37.5 million, a $0.2 million decrease from $37.7 million for the same period of last year, due to the decrease in the average number of our vessels.
  •  Impairment loss for the twelve months ended December 31, 2020 was $3.9 million and related to four of our oldest vessels. The impairment loss for the year ended December 31, 2019 was $1.0 million and related to two vessels.
  •  Interest and finance costs for the twelve months ended December 31, 2020 and 2019 were $14.1 million and $21.0 million, respectively. The $6.9 million decrease from the same period of last year is mostly due to the decline of LIBOR rates in 2020, along with the decrease of our indebtedness.
  • Equity gain in joint ventures for the twelve months ended December 31, 2020 and 2019 was $2.7 million and $0.5 million, respectively. The $2.2 million increase from the same period of last year is mainly due to the profitability of the three secondhand (2010 built) 35,000 cbm medium gas carriers which operated under a joint venture arrangement since Q1 ‘20.
  • As a result of the above, the Company reported net income for the twelve months ended December 31, 2020 of $12.0 million, compared to net income of $2.1 million for the twelve months ended December 31, 2019. The weighted average number of shares outstanding as of December 31, 2020 and 2019 was 38.4 million and 39.8 million, respectively. Earnings per share for the twelve months ended December 31, 2020 amounted to $0.31 compared to earnings per share of $0.05 for the same period of last year.
  • Adjusted net income was $16.9 million, or $0.44 per share, for the twelve months ended December 31, 2020 compared to adjusted net income of $4.3 million, or $0.11 per share, for the same period of last year.
  • EBITDA for the twelve months ended December 31, 2020 amounted to $63.4 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
  • An average of 41.6 vessels were owned by the Company during the twelve months ended December 31, 2020, compared to 42.6 vessels for the same period of 2019.
  • As of December 31, 2020, cash and cash equivalents amounted to $38.2 million and total debt amounted to $351.8 million. During the twelve months ended December 31, 2020 debt repayments amounted to $41.8 million.

Fleet Update Since Previous Announcement

The Company announced the conclusion of the following chartering arrangements:  

  • A  three year time charter extension for its 2014 built LPG carrier, the Eco Elysium, to a Major Energy Conglomerate until June 2024.

§     A  two year time charter for its 2011 built LPG carrier, the Gas Myth, to a Major International Chemical Producer until January 2023.

§     A one year time charter for its 2014 built LPG carrier, the Eco Corsair, to an Oil Major until February 2022.

§     A one year time charter for its 2015 built LPG carrier, the Eco Enigma, to a Major International Trading House until January 2022.

§     A one year time charter for its 2014 built LPG carrier, the Eco Royalty, to an Oil Major until February 2022.

§     A one year time charter for its 2014 built LPG carrier, the Eco Loyalty, to an Oil Major until February 2022.

§     A six months time charter for its 2008 built Product Tanker, the Clean Thrasher, to an Energy Trader until August 2021.

§     A four months time charter for its 2016 built LPG carrier, the Eco Nical, to an International LPG Trader until June 2021.

§     A three months time charter for its 2015 built LPG carrier, the Eco Czar, to an International LPG Trader until May 2021.

§     A two months time charter for its 2016 built LPG carrier, the Eco Dominator, to an International LPG Trader until March 2021.

With these charters, the Company has total contracted revenues of approximately $81 million.

Total anticipated fleet days of our fleet is approximately 50% covered for the remainder of 2021.

Board Chairman Michael Jolliffe Commented

The year 2020 will always be remembered globally for precarious reasons and the shipping world was not spared. With regards to the segment we operate in, LPG demand marked a decline and rates for the majority of the sub-segments we operate in were soft- particularly during the second half of 2020. The tanker market was affected as well as, currently, rates are at very low levels in the shipping cycle. On top of that, we were hit with the bankruptcy of one of our charterers which had to redeliver four of our ships earlier than was agreed.

Nevertheless, with an Adjusted Net Income of almost $17 million, corresponding to an Adjusted EPS of $0.44 generated in 2020, we feel positive for 2021.

Looking ahead, we recognize that market turbulence due to the COVID-19 pandemic might last – possibly even throughout the whole of 2021. However, we can leverage upon our strengths including our solid cash base and balance sheet, our low gearing and the significant operating leverage we have, as including our JV vessels we operate a fleet of 50 ships.

As our shares trade at low levels, we strongly believe that this is an opportunity for potential investors as we have a long standing record of a sturdy and prudent company with a strong position in the segment in which we operate in.

Slides and audio webcast:

There will also be a live and then archived webcast of the conference call, through the STEALTHGAS INC. website (www.stealthgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About STEALTHGAS INC.

StealthGas Inc. is a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry.  StealthGas Inc. has a fleet of 50 vessels. The fleet is comprised of 46 LPG carriers, including eight Joint Venture vessels. These LPG vessels have a total capacity of 436,692 cubic meters (cbm). The Company also owns three M.R. product tankers and one Aframax oil tanker with a total capacity of 255,804 deadweight tons (dwt). StealthGas Inc.’s shares are listed on the Nasdaq Global Select Market and trade under the symbol “GASS.”

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, or impact or duration of the COVID-19 pandemic and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although STEALTHGAS INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, STEALTHGAS INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in STEALTHGAS INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by STEALTHGAS INC. with the U.S. Securities and Exchange Commission.

Fleet List and Fleet Deployment                        

For information on our fleet and further information:

Visit our website at www.stealthgas.com

Company Contact:

Fenia Sakellaris

STEALTHGAS INC.

011-30-210-6250-001
E-mail: info@stealthgas.com

Fleet Data:

The following key indicators highlight the Company’s operating performance during the year ended December 31, 2019 and December 31, 2020.

FLEET DATAQ4 2019Q4 202012M 201912M 2020
Average number of vessels (1)41.0042.1042.5741.56
Period end number of owned vessels in fleet41414141
Total calendar days for fleet (2)3,9523,87316,32815,292
Total voyage days for fleet (3)3,9093,81316,23015,079
Fleet utilization (4)98.9%98.5%99.4%98.6%
Total charter days for fleet (5)3,2992,70013,54112,442
Total spot market days for fleet (6)6101,1132,6892,637
Fleet operational utilization (7)97.9%93.6%97.5%96.1%

1) Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

2) Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.

3) Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.

4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.

5) Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.

6) Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.

7) Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days (excluding commercially idle days) by fleet calendar days for the relevant period.

Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:

Adjusted net income represents net income/(loss) before (gain)/loss on derivatives excluding swap interest received/(paid), net loss on sale of vessels, gain on deconsolidation of subsidiaries, impairment loss and share based compensation. EBITDA represents net income/(loss) before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income/(loss) before interest and finance costs, interest income, depreciation, share based compensation, impairment loss, (gain)/loss on derivatives, net loss on sale of vessels and gain on deconsolidation of subsidiaries.

Adjusted EPS represents Adjusted net income divided by the weighted average number of shares. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries.  In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.

EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance.

(Expressed in United States Dollars,
except number of shares)
Fourth Quarter Ended December 31,Twelve Months Period Ended December 31,
 2019202020192020
Net income/(loss) – Adjusted Net Income
Net income/(loss)531,281(740,037)2,093,12411,984,485
Less/Plus (gain)/loss on derivatives(18,852)29,565107,55050,976
Plus/Less swap interest received/(paid)16,048(24,847)148,100(89,537)
Plus net loss on sale of vessels1,134,854485,5161,134,854
Less gain on deconsolidation of subsidiaries(145,000)
Plus impairment loss993,916714,895993,9163,857,307
Plus share based compensation611,644
Adjusted Net Income1,522,3931,114,4304,294,85016,938,085
Net income/(loss) – EBITDA
Net income/(loss)531,281(740,037)2,093,12411,984,485
Plus interest and finance costs4,471,6933,136,66620,978,06514,129,893
Less interest income(171,115)(14,715)(846,271)(167,794)
Plus depreciation9,321,9229,456,60637,693,73337,455,093
EBITDA14,153,78111,838,52059,918,65163,401,677
Net income/(loss) – Adjusted  EBITDA
Net income/(loss)531,281(740,037)2,093,12411,984,485
Less/Plus (gain)/loss on derivatives(18,852)29,565107,55050,976
Plus net loss on sale of vessels1,134,854485,5161,134,854
Less gain on deconsolidation of subsidiaries(145,000)
Plus impairment loss993,916714,895993,9163,857,307
Plus share based compensation611,644
Plus interest and finance costs4,471,6933,136,66620,978,06514,129,893
Less interest income(171,115)(14,715)(846,271)(167,794)
Plus depreciation9,321,9229,456,60637,693,73337,455,093
Adjusted EBITDA15,128,84513,717,83461,972,27768,444,814
EPS – Adjusted EPS
Net income/(loss)531,281(740,037)2,093,12411,984,485
Adjusted net income1,522,3931,114,4304,294,85016,938,085
Weighted average number of shares39,710,10337,858,43739,800,43438,357,893
EPS – Basic and Diluted0.01(0.02)0.050.31
Adjusted EPS0.040.030.110.44

StealthGas Inc.

Unaudited Consolidated Statements of Operations

(Expressed in United States Dollars, except for number of shares)

Quarters Ended December 31, Twelve Month Periods Ended December 31,
    2019 2020 2019 2020
    
Revenues
Revenues35,164,69837,294,459144,259,312145,003,021
Expenses
Voyage expenses3,676,9804,850,65915,201,97812,259,795
Voyage expenses – related party433,365467,1761,788,5431,799,209
Charter hire expenses1,234,019  —6,268,988318,606
Vessels’ operating expenses12,348,36914,407,05348,619,59452,344,721
Vessels’ operating expenses – related party240,000253,500966,500950,500
Drydocking costs360,289936,3961,094,3063,640,327
Management fees – related party1,384,1901,493,3415,730,9105,599,351
General and administrative expenses602,685657,4833,706,3202,301,308
Depreciation9,321,9229,456,60637,693,73337,455,093
Impairment loss993,916714,895993,9163,857,307
Net loss on sale of vessels  —1,134,854485,5161,134,854
Total expenses  30,595,735 34,371,963 122,550,304 121,661,071
           
Income from operations 4,568,963 2,922,496 21,709,008 23,341,950
Other (expenses)/income
Interest and finance costs(4,471,693)(3,136,666)(20,978,065)(14,129,893)
Gain on deconsolidation of subsidiaries  —  —145,000  —
Gain/(loss) on derivatives18,852(29,565)(107,550)(50,976)
Interest income171,11514,715846,271167,794
Foreign exchange gain/(loss)10,822(51,982)(8,235)(54,374)
Other expenses, net  (4,270,904) (3,203,498) (20,102,579) (14,067,449)
           
Income/(Loss) before equity in income of investees298,059(281,002)1,606,4299,274,501
Equity gain/(loss) in joint ventures 233,222(459,035) 486,695 2,709,984
Net Income/(Loss)  531,281 (740,037) 2,093,124 11,984,485
Earnings/(Loss) per share
– Basic & Diluted0.01(0.02)0.050.31
Weighted average number of shares
-Basic & Diluted39,710,10337,858,43739,800,43438,357,893

StealthGas Inc.

Unaudited Consolidated Balance Sheets

(Expressed in United States Dollars)

December 31, December 31,
     2019 2020
Assets
Current assets
Cash and cash equivalents68,465,34238,242,411
Trade and other receivables4,217,1013,602,764
Other current assets118,246309,608
Claims receivable314,217120,547
Inventories2,447,7033,687,098
Advances and prepayments749,681782,125
Restricted cash1,589,7681,308,971
Fair value of derivatives30,381
Total current assets  77,932,439 48,053,524
Non current assets
Advances for vessel under construction2,988,9036,539,115
Operating lease right-of-use assets473,132  —
Vessels, net835,152,403832,335,059
Other receivables286,91526,427
Restricted cash12,065,22213,488,820
Investments in joint ventures25,250,17343,177,657
Deferred finance charges  —385,705
Fair value of derivatives39,744  —
Total non current assets 876,256,492 895,952,783
Total assets  954,188,931 944,006,307
Current liabilities
Payable to related parties7,043,1214,659,861
Trade accounts payable9,032,6909,974,751
Accrued and other liabilities6,002,0793,773,499
Operating lease liabilities473,132
Customer deposits968,000968,000
Deferred income2,843,9942,995,657
Fair value of derivatives37,567141,447
Current portion of long-term debt40,735,55640,547,892
Total current liabilities 67,136,139 63,061,107
Non current liabilities
Fair value of derivatives2,618,2505,099,464
Long-term debt325,247,902 311,249,321
Total non current liabilities 327,866,152 316,348,785
Total liabilities  395,002,291 379,409,892
Commitments and contingencies    
Stockholders’ equity
 Capital stock445,496431,836
Treasury stock(24,361,145)(25,373,380)
Additional paid-in capital502,419,122499,564,087
Retained earnings82,942,21094,926,695
Accumulated other comprehensive loss(2,259,043)(4,952,823)
Total stockholders’ equity 559,186,640 564,596,415
Total liabilities and stockholders’ equity954,188,931 944,006,307

StealthGas Inc.

Unaudited Consolidated Statements of Cash Flows

(Expressed in United States Dollars)

  Twelve Month Periods Ended December 31,
  2019 2020
Cash flows from operating activities
Net income for the year2,093,12411,984,485
Adjustments to reconcile net income to net cash
  provided by operating activities:
Depreciation37,693,73337,455,093
Amortization of deferred finance charges885,191698,364
Amortization of operating lease right-of-use assets1,572,943473,132
Share based compensation611,644  —
Change in fair value of derivatives255,650(38,561)
Equity gain in joint ventures(486,695)(2,709,984)
Impairment loss993,9163,857,307
Net loss on sale of vessels485,5161,134,854
Gain on deconsolidation of subsidiaries(145,000)  —
Changes in operating assets and liabilities:
(Increase)/decrease in
Trade and other receivables(1,506,590)874,825
Other current assets16,055(191,362)
Claims receivable(1,307,763)193,670
Inventories617,468(1,239,395)
Changes in operating lease liabilities(1,572,943)(473,132)
Advances and prepayments339,858(32,444)
Increase/(decrease) in
Balances with related parties(5,845,771)1,617,032
Trade accounts payable(1,316,668)761,193
Accrued liabilities(217,409)(2,403,644)
Deferred income(2,347,660) 151,663
Net cash provided by operating activities30,818,599 52,113,096
Cash flows from investing activities
Insurance proceeds993,546  —
Proceeds from sale of interests in subsidiaries20,720,975  —
Vessels’ acquisitions and advances for vessels under construction(2,988,903)(48,121,422)
Proceeds from sale of vessels, net18,721,1235,264,768
Investment in joint ventures(11,322,600)(41,998,500)
Return of investments by joint ventures7,363,14726,781,000
Advances to joint ventures(5,083,919)(29,245)
Advances from joint ventures5,083,91929,245
Net cash provided by/(used in) investing activities33,487,288 (58,074,154)
Cash flows from financing activities
Stock repurchase(1,837,617)(3,880,930)
Deferred finance charges paid(477,201)(538,004)
Advances from joint ventures4,958,2501,841,380
Advances to joint ventures(5,841,672)
Customer deposits paid(368,000)  —
Loan repayments(97,371,978)(41,804,846)
Proceeds from long-term debt33,480,00027,105,000
Net cash used in financing activities(61,616,546) (23,119,072)
Net increase/(decrease) in cash, cash equivalents and restricted cash2,689,341(29,080,130)
Cash, cash equivalents and restricted cash at beginning of year79,430,99182,120,332
Cash, cash equivalents and restricted cash at end of year82,120,332 53,040,202
Cash breakdown
Cash and cash equivalents68,465,34238,242,411
Restricted cash, current1,589,7681,308,971
 Restricted cash, non current12,065,222 13,488,820
Total cash, cash equivalents and restricted cash shown in the statements of cash flows82,120,332 53,040,202

[1] EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release.

ATHENS, GREECE, February 25, 2021. STEALTHGAS INC. (NASDAQ: GASS), a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today its unaudited financial and operating results for the twelve months ended December 31, 2020.

OPERATIONAL AND FINANCIAL HIGHLIGHTS[1]

  • Fleet utilization of 98.5% with 60 days of technical off hire mainly as a result of two drydockings completed within Q4 2020.
  • Fleet operational utilization of 93.6% mainly due to a number of our ships having a presence in the spot market – equivalent to 28.7% of calendar days.
  • Fleet calendar days, down by 2% quarter over quarter to 3,873 – the decrease attributable mostly to our strategic fleet contraction.
  • About 50% of fleet days secured on period charters for the remainder of 2021 (74% for Q1 21’), with total fleet employment days for all subsequent periods (up until June 2024), generating approximately $81 million in contracted revenues. Including the JV time charters, total secured revenues amount to $92 million.
  • Delivery of a 11,000 cbm newbuilding LPG vessel, the Eco Blizzard, on February 5, 2021 – thus completing our capital expenditure schedule.
  • Sale of our oldest vessel the Gas Pasha (1995 built) on December 7, 2020 for further trading.
  • Following our recent S&P activity, our average LPG fleet age (including our JV vessels) is 9 years.
  • Voyage revenues of $37.3 million in Q4 ’20, an increase of $2.1 million compared to Q4 ’19 mostly due to a 50% reduction of bareboat activity where generated revenue is inherently lower and an increase of time charter revenues stemming from our larger LPG vessels.
  • Net loss of $0.7 million in Q4 20’ corresponding to a net loss per share of $0.02 compared to net income of $0.5 million in Q4 ’19 corresponding to an EPS of $0.01.
  • Adjusted EBITDA of $13.7 million in Q4 20’ compared to $15.1 million in Q4 ’19.
  • Low gearing, as debt to assets stands at 37.3%, and quarter- over- quarter reduction in finance costs by $1.4 million.
  • Total cash, including restricted cash, of $53.0 million as of December 31, 2020 – increased compared to the previous quarter end following the post-delivery financing of the LPG newbuilding Eco Alice.
  • Adjusted net income of  $1.1 million for Q4 20’ corresponding to an Adjusted EPS of $0.03 while for the year 2020 our Adjusted net income was $16.9 million corresponding to an Adjusted EPS of $0.44 – a  good performance given difficult market conditions.

Twelve Months 2020 Results:

  • Revenues for the twelve months ended December 31, 2020 amounted to $145.0 million, an increase of $0.7 million, or 0.5%, compared to revenues of $144.3 million for the twelve months ended December 31, 2019, due to higher revenues stemming from our time charter contracts along with a  reduction of our bareboat activity, partially offset by the reduction of our fleet calendar days by 6.3% and the significant reduction in the calendar days of our charter-in vessels.
  • Voyage expenses and vessels’ operating expenses for the twelve months ended December 31, 2020 were $14.1 million and $53.3 million, respectively, compared to $17.0 million and $49.6 million for the twelve months ended December 31, 2019. The $2.9 million decrease in voyage expenses is mostly attributed to the 18.7% reduction in bunker costs  due to low prevailing oil prices. The $3.7 million increase in vessels’ operating expenses is mostly due to fewer vessels on bareboat and increased crew costs faced due to the COVID-19 pandemic.
  • Drydocking costs for the twelve months ended December 31, 2020 and 2019 were $3.6 million and $1.1 million, respectively. The costs for the twelve months ended December 31, 2020 mainly related to the drydocking of seven  vessels, while the costs for the same period of last year related to the docking survey of one small LPG and the drydocking of two LPG vessels.
  •  General and Administrative expenses for the twelve months ended December 31, 2020 amounted to $2.3 million compared to $3.7 million for the same period of last year. This decrease is mainly attributed to the fact that for the twelve months ended December 31, 2019 share based compensation expense was incurred, which was not the case for the twelve months ended December 31, 2020 since all the shares awarded under our equity compensation plan vested in August 2019.
  • Depreciation for the twelve months ended December 31, 2020, was $37.5 million, a $0.2 million decrease from $37.7 million for the same period of last year, due to the decrease in the average number of our vessels.
  •  Impairment loss for the twelve months ended December 31, 2020 was $3.9 million and related to four of our oldest vessels. The impairment loss for the year ended December 31, 2019 was $1.0 million and related to two vessels.
  •  Interest and finance costs for the twelve months ended December 31, 2020 and 2019 were $14.1 million and $21.0 million, respectively. The $6.9 million decrease from the same period of last year is mostly due to the decline of LIBOR rates in 2020, along with the decrease of our indebtedness.
  • Equity gain in joint ventures for the twelve months ended December 31, 2020 and 2019 was $2.7 million and $0.5 million, respectively. The $2.2 million increase from the same period of last year is mainly due to the profitability of the three secondhand (2010 built) 35,000 cbm medium gas carriers which operated under a joint venture arrangement since Q1 ‘20.
  • As a result of the above, the Company reported net income for the twelve months ended December 31, 2020 of $12.0 million, compared to net income of $2.1 million for the twelve months ended December 31, 2019. The weighted average number of shares outstanding as of December 31, 2020 and 2019 was 38.4 million and 39.8 million, respectively. Earnings per share for the twelve months ended December 31, 2020 amounted to $0.31 compared to earnings per share of $0.05 for the same period of last year.
  • Adjusted net income was $16.9 million, or $0.44 per share, for the twelve months ended December 31, 2020 compared to adjusted net income of $4.3 million, or $0.11 per share, for the same period of last year.
  • EBITDA for the twelve months ended December 31, 2020 amounted to $63.4 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
  • An average of 41.6 vessels were owned by the Company during the twelve months ended December 31, 2020, compared to 42.6 vessels for the same period of 2019.
  • As of December 31, 2020, cash and cash equivalents amounted to $38.2 million and total debt amounted to $351.8 million. During the twelve months ended December 31, 2020 debt repayments amounted to $41.8 million.

Fleet Update Since Previous Announcement

The Company announced the conclusion of the following chartering arrangements:  

  • A  three year time charter extension for its 2014 built LPG carrier, the Eco Elysium, to a Major Energy Conglomerate until June 2024.

§     A  two year time charter for its 2011 built LPG carrier, the Gas Myth, to a Major International Chemical Producer until January 2023.

§     A one year time charter for its 2014 built LPG carrier, the Eco Corsair, to an Oil Major until February 2022.

§     A one year time charter for its 2015 built LPG carrier, the Eco Enigma, to a Major International Trading House until January 2022.

§     A one year time charter for its 2014 built LPG carrier, the Eco Royalty, to an Oil Major until February 2022.

§     A one year time charter for its 2014 built LPG carrier, the Eco Loyalty, to an Oil Major until February 2022.

§     A six months time charter for its 2008 built Product Tanker, the Clean Thrasher, to an Energy Trader until August 2021.

§     A four months time charter for its 2016 built LPG carrier, the Eco Nical, to an International LPG Trader until June 2021.

§     A three months time charter for its 2015 built LPG carrier, the Eco Czar, to an International LPG Trader until May 2021.

§     A two months time charter for its 2016 built LPG carrier, the Eco Dominator, to an International LPG Trader until March 2021.

With these charters, the Company has total contracted revenues of approximately $81 million.

Total anticipated fleet days of our fleet is approximately 50% covered for the remainder of 2021.

Board Chairman Michael Jolliffe Commented

The year 2020 will always be remembered globally for precarious reasons and the shipping world was not spared. With regards to the segment we operate in, LPG demand marked a decline and rates for the majority of the sub-segments we operate in were soft- particularly during the second half of 2020. The tanker market was affected as well as, currently, rates are at very low levels in the shipping cycle. On top of that, we were hit with the bankruptcy of one of our charterers which had to redeliver four of our ships earlier than was agreed.

Nevertheless, with an Adjusted Net Income of almost $17 million, corresponding to an Adjusted EPS of $0.44 generated in 2020, we feel positive for 2021.

Looking ahead, we recognize that market turbulence due to the COVID-19 pandemic might last – possibly even throughout the whole of 2021. However, we can leverage upon our strengths including our solid cash base and balance sheet, our low gearing and the significant operating leverage we have, as including our JV vessels we operate a fleet of 50 ships.

As our shares trade at low levels, we strongly believe that this is an opportunity for potential investors as we have a long standing record of a sturdy and prudent company with a strong position in the segment in which we operate in.

Slides and audio webcast:

There will also be a live and then archived webcast of the conference call, through the STEALTHGAS INC. website (www.stealthgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About STEALTHGAS INC.

StealthGas Inc. is a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry.  StealthGas Inc. has a fleet of 50 vessels. The fleet is comprised of 46 LPG carriers, including eight Joint Venture vessels. These LPG vessels have a total capacity of 436,692 cubic meters (cbm). The Company also owns three M.R. product tankers and one Aframax oil tanker with a total capacity of 255,804 deadweight tons (dwt). StealthGas Inc.’s shares are listed on the Nasdaq Global Select Market and trade under the symbol “GASS.”

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, or impact or duration of the COVID-19 pandemic and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although STEALTHGAS INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, STEALTHGAS INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in STEALTHGAS INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by STEALTHGAS INC. with the U.S. Securities and Exchange Commission.

Fleet List and Fleet Deployment                        

For information on our fleet and further information:

Visit our website at www.stealthgas.com

Company Contact:

Fenia Sakellaris

STEALTHGAS INC.

011-30-210-6250-001
E-mail: info@stealthgas.com

Fleet Data:

The following key indicators highlight the Company’s operating performance during the year ended December 31, 2019 and December 31, 2020.

FLEET DATAQ4 2019Q4 202012M 201912M 2020
Average number of vessels (1)41.0042.1042.5741.56
Period end number of owned vessels in fleet41414141
Total calendar days for fleet (2)3,9523,87316,32815,292
Total voyage days for fleet (3)3,9093,81316,23015,079
Fleet utilization (4)98.9%98.5%99.4%98.6%
Total charter days for fleet (5)3,2992,70013,54112,442
Total spot market days for fleet (6)6101,1132,6892,637
Fleet operational utilization (7)97.9%93.6%97.5%96.1%

1) Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

2) Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.

3) Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.

4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.

5) Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.

6) Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.

7) Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days (excluding commercially idle days) by fleet calendar days for the relevant period.

Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:

Adjusted net income represents net income/(loss) before (gain)/loss on derivatives excluding swap interest received/(paid), net loss on sale of vessels, gain on deconsolidation of subsidiaries, impairment loss and share based compensation. EBITDA represents net income/(loss) before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income/(loss) before interest and finance costs, interest income, depreciation, share based compensation, impairment loss, (gain)/loss on derivatives, net loss on sale of vessels and gain on deconsolidation of subsidiaries.

Adjusted EPS represents Adjusted net income divided by the weighted average number of shares. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries.  In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.

EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance.

(Expressed in United States Dollars,
except number of shares)
Fourth Quarter Ended December 31,Twelve Months Period Ended December 31,
 2019202020192020
Net income/(loss) – Adjusted Net Income
Net income/(loss)531,281(740,037)2,093,12411,984,485
Less/Plus (gain)/loss on derivatives(18,852)29,565107,55050,976
Plus/Less swap interest received/(paid)16,048(24,847)148,100(89,537)
Plus net loss on sale of vessels1,134,854485,5161,134,854
Less gain on deconsolidation of subsidiaries(145,000)
Plus impairment loss993,916714,895993,9163,857,307
Plus share based compensation611,644
Adjusted Net Income1,522,3931,114,4304,294,85016,938,085
Net income/(loss) – EBITDA
Net income/(loss)531,281(740,037)2,093,12411,984,485
Plus interest and finance costs4,471,6933,136,66620,978,06514,129,893
Less interest income(171,115)(14,715)(846,271)(167,794)
Plus depreciation9,321,9229,456,60637,693,73337,455,093
EBITDA14,153,78111,838,52059,918,65163,401,677
Net income/(loss) – Adjusted  EBITDA
Net income/(loss)531,281(740,037)2,093,12411,984,485
Less/Plus (gain)/loss on derivatives(18,852)29,565107,55050,976
Plus net loss on sale of vessels1,134,854485,5161,134,854
Less gain on deconsolidation of subsidiaries(145,000)
Plus impairment loss993,916714,895993,9163,857,307
Plus share based compensation611,644
Plus interest and finance costs4,471,6933,136,66620,978,06514,129,893
Less interest income(171,115)(14,715)(846,271)(167,794)
Plus depreciation9,321,9229,456,60637,693,73337,455,093
Adjusted EBITDA15,128,84513,717,83461,972,27768,444,814
EPS – Adjusted EPS
Net income/(loss)531,281(740,037)2,093,12411,984,485
Adjusted net income1,522,3931,114,4304,294,85016,938,085
Weighted average number of shares39,710,10337,858,43739,800,43438,357,893
EPS – Basic and Diluted0.01(0.02)0.050.31
Adjusted EPS0.040.030.110.44

StealthGas Inc.

Unaudited Consolidated Statements of Operations

(Expressed in United States Dollars, except for number of shares)

Quarters Ended December 31, Twelve Month Periods Ended December 31,
    2019 2020 2019 2020
    
Revenues
Revenues35,164,69837,294,459144,259,312145,003,021
Expenses
Voyage expenses3,676,9804,850,65915,201,97812,259,795
Voyage expenses – related party433,365467,1761,788,5431,799,209
Charter hire expenses1,234,019  —6,268,988318,606
Vessels’ operating expenses12,348,36914,407,05348,619,59452,344,721
Vessels’ operating expenses – related party240,000253,500966,500950,500
Drydocking costs360,289936,3961,094,3063,640,327
Management fees – related party1,384,1901,493,3415,730,9105,599,351
General and administrative expenses602,685657,4833,706,3202,301,308
Depreciation9,321,9229,456,60637,693,73337,455,093
Impairment loss993,916714,895993,9163,857,307
Net loss on sale of vessels  —1,134,854485,5161,134,854
Total expenses  30,595,735 34,371,963 122,550,304 121,661,071
           
Income from operations 4,568,963 2,922,496 21,709,008 23,341,950
Other (expenses)/income
Interest and finance costs(4,471,693)(3,136,666)(20,978,065)(14,129,893)
Gain on deconsolidation of subsidiaries  —  —145,000  —
Gain/(loss) on derivatives18,852(29,565)(107,550)(50,976)
Interest income171,11514,715846,271167,794
Foreign exchange gain/(loss)10,822(51,982)(8,235)(54,374)
Other expenses, net  (4,270,904) (3,203,498) (20,102,579) (14,067,449)
           
Income/(Loss) before equity in income of investees298,059(281,002)1,606,4299,274,501
Equity gain/(loss) in joint ventures 233,222(459,035) 486,695 2,709,984
Net Income/(Loss)  531,281 (740,037) 2,093,124 11,984,485
Earnings/(Loss) per share
– Basic & Diluted0.01(0.02)0.050.31
Weighted average number of shares
-Basic & Diluted39,710,10337,858,43739,800,43438,357,893

StealthGas Inc.

Unaudited Consolidated Balance Sheets

(Expressed in United States Dollars)

December 31, December 31,
     2019 2020
Assets
Current assets
Cash and cash equivalents68,465,34238,242,411
Trade and other receivables4,217,1013,602,764
Other current assets118,246309,608
Claims receivable314,217120,547
Inventories2,447,7033,687,098
Advances and prepayments749,681782,125
Restricted cash1,589,7681,308,971
Fair value of derivatives30,381
Total current assets  77,932,439 48,053,524
Non current assets
Advances for vessel under construction2,988,9036,539,115
Operating lease right-of-use assets473,132  —
Vessels, net835,152,403832,335,059
Other receivables286,91526,427
Restricted cash12,065,22213,488,820
Investments in joint ventures25,250,17343,177,657
Deferred finance charges  —385,705
Fair value of derivatives39,744  —
Total non current assets 876,256,492 895,952,783
Total assets  954,188,931 944,006,307
Current liabilities
Payable to related parties7,043,1214,659,861
Trade accounts payable9,032,6909,974,751
Accrued and other liabilities6,002,0793,773,499
Operating lease liabilities473,132
Customer deposits968,000968,000
Deferred income2,843,9942,995,657
Fair value of derivatives37,567141,447
Current portion of long-term debt40,735,55640,547,892
Total current liabilities 67,136,139 63,061,107
Non current liabilities
Fair value of derivatives2,618,2505,099,464
Long-term debt325,247,902 311,249,321
Total non current liabilities 327,866,152 316,348,785
Total liabilities  395,002,291 379,409,892
Commitments and contingencies    
Stockholders’ equity
 Capital stock445,496431,836
Treasury stock(24,361,145)(25,373,380)
Additional paid-in capital502,419,122499,564,087
Retained earnings82,942,21094,926,695
Accumulated other comprehensive loss(2,259,043)(4,952,823)
Total stockholders’ equity 559,186,640 564,596,415
Total liabilities and stockholders’ equity954,188,931 944,006,307

StealthGas Inc.

Unaudited Consolidated Statements of Cash Flows

(Expressed in United States Dollars)

  Twelve Month Periods Ended December 31,
  2019 2020
Cash flows from operating activities
Net income for the year2,093,12411,984,485
Adjustments to reconcile net income to net cash
  provided by operating activities:
Depreciation37,693,73337,455,093
Amortization of deferred finance charges885,191698,364
Amortization of operating lease right-of-use assets1,572,943473,132
Share based compensation611,644  —
Change in fair value of derivatives255,650(38,561)
Equity gain in joint ventures(486,695)(2,709,984)
Impairment loss993,9163,857,307
Net loss on sale of vessels485,5161,134,854
Gain on deconsolidation of subsidiaries(145,000)  —
Changes in operating assets and liabilities:
(Increase)/decrease in
Trade and other receivables(1,506,590)874,825
Other current assets16,055(191,362)
Claims receivable(1,307,763)193,670
Inventories617,468(1,239,395)
Changes in operating lease liabilities(1,572,943)(473,132)
Advances and prepayments339,858(32,444)
Increase/(decrease) in
Balances with related parties(5,845,771)1,617,032
Trade accounts payable(1,316,668)761,193
Accrued liabilities(217,409)(2,403,644)
Deferred income(2,347,660) 151,663
Net cash provided by operating activities30,818,599 52,113,096
Cash flows from investing activities
Insurance proceeds993,546  —
Proceeds from sale of interests in subsidiaries20,720,975  —
Vessels’ acquisitions and advances for vessels under construction(2,988,903)(48,121,422)
Proceeds from sale of vessels, net18,721,1235,264,768
Investment in joint ventures(11,322,600)(41,998,500)
Return of investments by joint ventures7,363,14726,781,000
Advances to joint ventures(5,083,919)(29,245)
Advances from joint ventures5,083,91929,245
Net cash provided by/(used in) investing activities33,487,288 (58,074,154)
Cash flows from financing activities
Stock repurchase(1,837,617)(3,880,930)
Deferred finance charges paid(477,201)(538,004)
Advances from joint ventures4,958,2501,841,380
Advances to joint ventures(5,841,672)
Customer deposits paid(368,000)  —
Loan repayments(97,371,978)(41,804,846)
Proceeds from long-term debt33,480,00027,105,000
Net cash used in financing activities(61,616,546) (23,119,072)
Net increase/(decrease) in cash, cash equivalents and restricted cash2,689,341(29,080,130)
Cash, cash equivalents and restricted cash at beginning of year79,430,99182,120,332
Cash, cash equivalents and restricted cash at end of year82,120,332 53,040,202
Cash breakdown
Cash and cash equivalents68,465,34238,242,411
Restricted cash, current1,589,7681,308,971
 Restricted cash, non current12,065,222 13,488,820
Total cash, cash equivalents and restricted cash shown in the statements of cash flows82,120,332 53,040,202

[1] EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release.

ATHENS, GREECE, February 25, 2021. STEALTHGAS INC. (NASDAQ: GASS), a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today its unaudited financial and operating results for the twelve months ended December 31, 2020.

OPERATIONAL AND FINANCIAL HIGHLIGHTS[1]

  • Fleet utilization of 98.5% with 60 days of technical off hire mainly as a result of two drydockings completed within Q4 2020.
  • Fleet operational utilization of 93.6% mainly due to a number of our ships having a presence in the spot market – equivalent to 28.7% of calendar days.
  • Fleet calendar days, down by 2% quarter over quarter to 3,873 – the decrease attributable mostly to our strategic fleet contraction.
  • About 50% of fleet days secured on period charters for the remainder of 2021 (74% for Q1 21’), with total fleet employment days for all subsequent periods (up until June 2024), generating approximately $81 million in contracted revenues. Including the JV time charters, total secured revenues amount to $92 million.
  • Delivery of a 11,000 cbm newbuilding LPG vessel, the Eco Blizzard, on February 5, 2021 – thus completing our capital expenditure schedule.
  • Sale of our oldest vessel the Gas Pasha (1995 built) on December 7, 2020 for further trading.
  • Following our recent S&P activity, our average LPG fleet age (including our JV vessels) is 9 years.
  • Voyage revenues of $37.3 million in Q4 ’20, an increase of $2.1 million compared to Q4 ’19 mostly due to a 50% reduction of bareboat activity where generated revenue is inherently lower and an increase of time charter revenues stemming from our larger LPG vessels.
  • Net loss of $0.7 million in Q4 20’ corresponding to a net loss per share of $0.02 compared to net income of $0.5 million in Q4 ’19 corresponding to an EPS of $0.01.
  • Adjusted EBITDA of $13.7 million in Q4 20’ compared to $15.1 million in Q4 ’19.
  • Low gearing, as debt to assets stands at 37.3%, and quarter- over- quarter reduction in finance costs by $1.4 million.
  • Total cash, including restricted cash, of $53.0 million as of December 31, 2020 – increased compared to the previous quarter end following the post-delivery financing of the LPG newbuilding Eco Alice.
  • Adjusted net income of  $1.1 million for Q4 20’ corresponding to an Adjusted EPS of $0.03 while for the year 2020 our Adjusted net income was $16.9 million corresponding to an Adjusted EPS of $0.44 – a  good performance given difficult market conditions.

Twelve Months 2020 Results:

  • Revenues for the twelve months ended December 31, 2020 amounted to $145.0 million, an increase of $0.7 million, or 0.5%, compared to revenues of $144.3 million for the twelve months ended December 31, 2019, due to higher revenues stemming from our time charter contracts along with a  reduction of our bareboat activity, partially offset by the reduction of our fleet calendar days by 6.3% and the significant reduction in the calendar days of our charter-in vessels.
  • Voyage expenses and vessels’ operating expenses for the twelve months ended December 31, 2020 were $14.1 million and $53.3 million, respectively, compared to $17.0 million and $49.6 million for the twelve months ended December 31, 2019. The $2.9 million decrease in voyage expenses is mostly attributed to the 18.7% reduction in bunker costs  due to low prevailing oil prices. The $3.7 million increase in vessels’ operating expenses is mostly due to fewer vessels on bareboat and increased crew costs faced due to the COVID-19 pandemic.
  • Drydocking costs for the twelve months ended December 31, 2020 and 2019 were $3.6 million and $1.1 million, respectively. The costs for the twelve months ended December 31, 2020 mainly related to the drydocking of seven  vessels, while the costs for the same period of last year related to the docking survey of one small LPG and the drydocking of two LPG vessels.
  •  General and Administrative expenses for the twelve months ended December 31, 2020 amounted to $2.3 million compared to $3.7 million for the same period of last year. This decrease is mainly attributed to the fact that for the twelve months ended December 31, 2019 share based compensation expense was incurred, which was not the case for the twelve months ended December 31, 2020 since all the shares awarded under our equity compensation plan vested in August 2019.
  • Depreciation for the twelve months ended December 31, 2020, was $37.5 million, a $0.2 million decrease from $37.7 million for the same period of last year, due to the decrease in the average number of our vessels.
  •  Impairment loss for the twelve months ended December 31, 2020 was $3.9 million and related to four of our oldest vessels. The impairment loss for the year ended December 31, 2019 was $1.0 million and related to two vessels.
  •  Interest and finance costs for the twelve months ended December 31, 2020 and 2019 were $14.1 million and $21.0 million, respectively. The $6.9 million decrease from the same period of last year is mostly due to the decline of LIBOR rates in 2020, along with the decrease of our indebtedness.
  • Equity gain in joint ventures for the twelve months ended December 31, 2020 and 2019 was $2.7 million and $0.5 million, respectively. The $2.2 million increase from the same period of last year is mainly due to the profitability of the three secondhand (2010 built) 35,000 cbm medium gas carriers which operated under a joint venture arrangement since Q1 ‘20.
  • As a result of the above, the Company reported net income for the twelve months ended December 31, 2020 of $12.0 million, compared to net income of $2.1 million for the twelve months ended December 31, 2019. The weighted average number of shares outstanding as of December 31, 2020 and 2019 was 38.4 million and 39.8 million, respectively. Earnings per share for the twelve months ended December 31, 2020 amounted to $0.31 compared to earnings per share of $0.05 for the same period of last year.
  • Adjusted net income was $16.9 million, or $0.44 per share, for the twelve months ended December 31, 2020 compared to adjusted net income of $4.3 million, or $0.11 per share, for the same period of last year.
  • EBITDA for the twelve months ended December 31, 2020 amounted to $63.4 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
  • An average of 41.6 vessels were owned by the Company during the twelve months ended December 31, 2020, compared to 42.6 vessels for the same period of 2019.
  • As of December 31, 2020, cash and cash equivalents amounted to $38.2 million and total debt amounted to $351.8 million. During the twelve months ended December 31, 2020 debt repayments amounted to $41.8 million.

Fleet Update Since Previous Announcement

The Company announced the conclusion of the following chartering arrangements:  

  • A  three year time charter extension for its 2014 built LPG carrier, the Eco Elysium, to a Major Energy Conglomerate until June 2024.

§     A  two year time charter for its 2011 built LPG carrier, the Gas Myth, to a Major International Chemical Producer until January 2023.

§     A one year time charter for its 2014 built LPG carrier, the Eco Corsair, to an Oil Major until February 2022.

§     A one year time charter for its 2015 built LPG carrier, the Eco Enigma, to a Major International Trading House until January 2022.

§     A one year time charter for its 2014 built LPG carrier, the Eco Royalty, to an Oil Major until February 2022.

§     A one year time charter for its 2014 built LPG carrier, the Eco Loyalty, to an Oil Major until February 2022.

§     A six months time charter for its 2008 built Product Tanker, the Clean Thrasher, to an Energy Trader until August 2021.

§     A four months time charter for its 2016 built LPG carrier, the Eco Nical, to an International LPG Trader until June 2021.

§     A three months time charter for its 2015 built LPG carrier, the Eco Czar, to an International LPG Trader until May 2021.

§     A two months time charter for its 2016 built LPG carrier, the Eco Dominator, to an International LPG Trader until March 2021.

With these charters, the Company has total contracted revenues of approximately $81 million.

Total anticipated fleet days of our fleet is approximately 50% covered for the remainder of 2021.

Board Chairman Michael Jolliffe Commented

The year 2020 will always be remembered globally for precarious reasons and the shipping world was not spared. With regards to the segment we operate in, LPG demand marked a decline and rates for the majority of the sub-segments we operate in were soft- particularly during the second half of 2020. The tanker market was affected as well as, currently, rates are at very low levels in the shipping cycle. On top of that, we were hit with the bankruptcy of one of our charterers which had to redeliver four of our ships earlier than was agreed.

Nevertheless, with an Adjusted Net Income of almost $17 million, corresponding to an Adjusted EPS of $0.44 generated in 2020, we feel positive for 2021.

Looking ahead, we recognize that market turbulence due to the COVID-19 pandemic might last – possibly even throughout the whole of 2021. However, we can leverage upon our strengths including our solid cash base and balance sheet, our low gearing and the significant operating leverage we have, as including our JV vessels we operate a fleet of 50 ships.

As our shares trade at low levels, we strongly believe that this is an opportunity for potential investors as we have a long standing record of a sturdy and prudent company with a strong position in the segment in which we operate in.

Slides and audio webcast:

There will also be a live and then archived webcast of the conference call, through the STEALTHGAS INC. website (www.stealthgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About STEALTHGAS INC.

StealthGas Inc. is a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry.  StealthGas Inc. has a fleet of 50 vessels. The fleet is comprised of 46 LPG carriers, including eight Joint Venture vessels. These LPG vessels have a total capacity of 436,692 cubic meters (cbm). The Company also owns three M.R. product tankers and one Aframax oil tanker with a total capacity of 255,804 deadweight tons (dwt). StealthGas Inc.’s shares are listed on the Nasdaq Global Select Market and trade under the symbol “GASS.”

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, or impact or duration of the COVID-19 pandemic and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although STEALTHGAS INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, STEALTHGAS INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in STEALTHGAS INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by STEALTHGAS INC. with the U.S. Securities and Exchange Commission.

Fleet List and Fleet Deployment                        

For information on our fleet and further information:

Visit our website at www.stealthgas.com

Company Contact:

Fenia Sakellaris

STEALTHGAS INC.

011-30-210-6250-001
E-mail: info@stealthgas.com

Fleet Data:

The following key indicators highlight the Company’s operating performance during the year ended December 31, 2019 and December 31, 2020.

FLEET DATAQ4 2019Q4 202012M 201912M 2020
Average number of vessels (1)41.0042.1042.5741.56
Period end number of owned vessels in fleet41414141
Total calendar days for fleet (2)3,9523,87316,32815,292
Total voyage days for fleet (3)3,9093,81316,23015,079
Fleet utilization (4)98.9%98.5%99.4%98.6%
Total charter days for fleet (5)3,2992,70013,54112,442
Total spot market days for fleet (6)6101,1132,6892,637
Fleet operational utilization (7)97.9%93.6%97.5%96.1%

1) Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

2) Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.

3) Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.

4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.

5) Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.

6) Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.

7) Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days (excluding commercially idle days) by fleet calendar days for the relevant period.

Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:

Adjusted net income represents net income/(loss) before (gain)/loss on derivatives excluding swap interest received/(paid), net loss on sale of vessels, gain on deconsolidation of subsidiaries, impairment loss and share based compensation. EBITDA represents net income/(loss) before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income/(loss) before interest and finance costs, interest income, depreciation, share based compensation, impairment loss, (gain)/loss on derivatives, net loss on sale of vessels and gain on deconsolidation of subsidiaries.

Adjusted EPS represents Adjusted net income divided by the weighted average number of shares. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries.  In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.

EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance.

(Expressed in United States Dollars,
except number of shares)
Fourth Quarter Ended December 31,Twelve Months Period Ended December 31,
 2019202020192020
Net income/(loss) – Adjusted Net Income
Net income/(loss)531,281(740,037)2,093,12411,984,485
Less/Plus (gain)/loss on derivatives(18,852)29,565107,55050,976
Plus/Less swap interest received/(paid)16,048(24,847)148,100(89,537)
Plus net loss on sale of vessels1,134,854485,5161,134,854
Less gain on deconsolidation of subsidiaries(145,000)
Plus impairment loss993,916714,895993,9163,857,307
Plus share based compensation611,644
Adjusted Net Income1,522,3931,114,4304,294,85016,938,085
Net income/(loss) – EBITDA
Net income/(loss)531,281(740,037)2,093,12411,984,485
Plus interest and finance costs4,471,6933,136,66620,978,06514,129,893
Less interest income(171,115)(14,715)(846,271)(167,794)
Plus depreciation9,321,9229,456,60637,693,73337,455,093
EBITDA14,153,78111,838,52059,918,65163,401,677
Net income/(loss) – Adjusted  EBITDA
Net income/(loss)531,281(740,037)2,093,12411,984,485
Less/Plus (gain)/loss on derivatives(18,852)29,565107,55050,976
Plus net loss on sale of vessels1,134,854485,5161,134,854
Less gain on deconsolidation of subsidiaries(145,000)
Plus impairment loss993,916714,895993,9163,857,307
Plus share based compensation611,644
Plus interest and finance costs4,471,6933,136,66620,978,06514,129,893
Less interest income(171,115)(14,715)(846,271)(167,794)
Plus depreciation9,321,9229,456,60637,693,73337,455,093
Adjusted EBITDA15,128,84513,717,83461,972,27768,444,814
EPS – Adjusted EPS
Net income/(loss)531,281(740,037)2,093,12411,984,485
Adjusted net income1,522,3931,114,4304,294,85016,938,085
Weighted average number of shares39,710,10337,858,43739,800,43438,357,893
EPS – Basic and Diluted0.01(0.02)0.050.31
Adjusted EPS0.040.030.110.44

StealthGas Inc.

Unaudited Consolidated Statements of Operations

(Expressed in United States Dollars, except for number of shares)

Quarters Ended December 31, Twelve Month Periods Ended December 31,
    2019 2020 2019 2020
    
Revenues
Revenues35,164,69837,294,459144,259,312145,003,021
Expenses
Voyage expenses3,676,9804,850,65915,201,97812,259,795
Voyage expenses – related party433,365467,1761,788,5431,799,209
Charter hire expenses1,234,019  —6,268,988318,606
Vessels’ operating expenses12,348,36914,407,05348,619,59452,344,721
Vessels’ operating expenses – related party240,000253,500966,500950,500
Drydocking costs360,289936,3961,094,3063,640,327
Management fees – related party1,384,1901,493,3415,730,9105,599,351
General and administrative expenses602,685657,4833,706,3202,301,308
Depreciation9,321,9229,456,60637,693,73337,455,093
Impairment loss993,916714,895993,9163,857,307
Net loss on sale of vessels  —1,134,854485,5161,134,854
Total expenses  30,595,735 34,371,963 122,550,304 121,661,071
           
Income from operations 4,568,963 2,922,496 21,709,008 23,341,950
Other (expenses)/income
Interest and finance costs(4,471,693)(3,136,666)(20,978,065)(14,129,893)
Gain on deconsolidation of subsidiaries  —  —145,000  —
Gain/(loss) on derivatives18,852(29,565)(107,550)(50,976)
Interest income171,11514,715846,271167,794
Foreign exchange gain/(loss)10,822(51,982)(8,235)(54,374)
Other expenses, net  (4,270,904) (3,203,498) (20,102,579) (14,067,449)
           
Income/(Loss) before equity in income of investees298,059(281,002)1,606,4299,274,501
Equity gain/(loss) in joint ventures 233,222(459,035) 486,695 2,709,984
Net Income/(Loss)  531,281 (740,037) 2,093,124 11,984,485
Earnings/(Loss) per share
– Basic & Diluted0.01(0.02)0.050.31
Weighted average number of shares
-Basic & Diluted39,710,10337,858,43739,800,43438,357,893

StealthGas Inc.

Unaudited Consolidated Balance Sheets

(Expressed in United States Dollars)

December 31, December 31,
     2019 2020
Assets
Current assets
Cash and cash equivalents68,465,34238,242,411
Trade and other receivables4,217,1013,602,764
Other current assets118,246309,608
Claims receivable314,217120,547
Inventories2,447,7033,687,098
Advances and prepayments749,681782,125
Restricted cash1,589,7681,308,971
Fair value of derivatives30,381
Total current assets  77,932,439 48,053,524
Non current assets
Advances for vessel under construction2,988,9036,539,115
Operating lease right-of-use assets473,132  —
Vessels, net835,152,403832,335,059
Other receivables286,91526,427
Restricted cash12,065,22213,488,820
Investments in joint ventures25,250,17343,177,657
Deferred finance charges  —385,705
Fair value of derivatives39,744  —
Total non current assets 876,256,492 895,952,783
Total assets  954,188,931 944,006,307
Current liabilities
Payable to related parties7,043,1214,659,861
Trade accounts payable9,032,6909,974,751
Accrued and other liabilities6,002,0793,773,499
Operating lease liabilities473,132
Customer deposits968,000968,000
Deferred income2,843,9942,995,657
Fair value of derivatives37,567141,447
Current portion of long-term debt40,735,55640,547,892
Total current liabilities 67,136,139 63,061,107
Non current liabilities
Fair value of derivatives2,618,2505,099,464
Long-term debt325,247,902 311,249,321
Total non current liabilities 327,866,152 316,348,785
Total liabilities  395,002,291 379,409,892
Commitments and contingencies    
Stockholders’ equity
 Capital stock445,496431,836
Treasury stock(24,361,145)(25,373,380)
Additional paid-in capital502,419,122499,564,087
Retained earnings82,942,21094,926,695
Accumulated other comprehensive loss(2,259,043)(4,952,823)
Total stockholders’ equity 559,186,640 564,596,415
Total liabilities and stockholders’ equity954,188,931 944,006,307

StealthGas Inc.

Unaudited Consolidated Statements of Cash Flows

(Expressed in United States Dollars)

  Twelve Month Periods Ended December 31,
  2019 2020
Cash flows from operating activities
Net income for the year2,093,12411,984,485
Adjustments to reconcile net income to net cash
  provided by operating activities:
Depreciation37,693,73337,455,093
Amortization of deferred finance charges885,191698,364
Amortization of operating lease right-of-use assets1,572,943473,132
Share based compensation611,644  —
Change in fair value of derivatives255,650(38,561)
Equity gain in joint ventures(486,695)(2,709,984)
Impairment loss993,9163,857,307
Net loss on sale of vessels485,5161,134,854
Gain on deconsolidation of subsidiaries(145,000)  —
Changes in operating assets and liabilities:
(Increase)/decrease in
Trade and other receivables(1,506,590)874,825
Other current assets16,055(191,362)
Claims receivable(1,307,763)193,670
Inventories617,468(1,239,395)
Changes in operating lease liabilities(1,572,943)(473,132)
Advances and prepayments339,858(32,444)
Increase/(decrease) in
Balances with related parties(5,845,771)1,617,032
Trade accounts payable(1,316,668)761,193
Accrued liabilities(217,409)(2,403,644)
Deferred income(2,347,660) 151,663
Net cash provided by operating activities30,818,599 52,113,096
Cash flows from investing activities
Insurance proceeds993,546  —
Proceeds from sale of interests in subsidiaries20,720,975  —
Vessels’ acquisitions and advances for vessels under construction(2,988,903)(48,121,422)
Proceeds from sale of vessels, net18,721,1235,264,768
Investment in joint ventures(11,322,600)(41,998,500)
Return of investments by joint ventures7,363,14726,781,000
Advances to joint ventures(5,083,919)(29,245)
Advances from joint ventures5,083,91929,245
Net cash provided by/(used in) investing activities33,487,288 (58,074,154)
Cash flows from financing activities
Stock repurchase(1,837,617)(3,880,930)
Deferred finance charges paid(477,201)(538,004)
Advances from joint ventures4,958,2501,841,380
Advances to joint ventures(5,841,672)
Customer deposits paid(368,000)  —
Loan repayments(97,371,978)(41,804,846)
Proceeds from long-term debt33,480,00027,105,000
Net cash used in financing activities(61,616,546) (23,119,072)
Net increase/(decrease) in cash, cash equivalents and restricted cash2,689,341(29,080,130)
Cash, cash equivalents and restricted cash at beginning of year79,430,99182,120,332
Cash, cash equivalents and restricted cash at end of year82,120,332 53,040,202
Cash breakdown
Cash and cash equivalents68,465,34238,242,411
Restricted cash, current1,589,7681,308,971
 Restricted cash, non current12,065,222 13,488,820
Total cash, cash equivalents and restricted cash shown in the statements of cash flows82,120,332 53,040,202

[1] EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release.

ATHENS, GREECE, February 25, 2021. STEALTHGAS INC. (NASDAQ: GASS), a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today its unaudited financial and operating results for the twelve months ended December 31, 2020.

OPERATIONAL AND FINANCIAL HIGHLIGHTS[1]

  • Fleet utilization of 98.5% with 60 days of technical off hire mainly as a result of two drydockings completed within Q4 2020.
  • Fleet operational utilization of 93.6% mainly due to a number of our ships having a presence in the spot market – equivalent to 28.7% of calendar days.
  • Fleet calendar days, down by 2% quarter over quarter to 3,873 – the decrease attributable mostly to our strategic fleet contraction.
  • About 50% of fleet days secured on period charters for the remainder of 2021 (74% for Q1 21’), with total fleet employment days for all subsequent periods (up until June 2024), generating approximately $81 million in contracted revenues. Including the JV time charters, total secured revenues amount to $92 million.
  • Delivery of a 11,000 cbm newbuilding LPG vessel, the Eco Blizzard, on February 5, 2021 – thus completing our capital expenditure schedule.
  • Sale of our oldest vessel the Gas Pasha (1995 built) on December 7, 2020 for further trading.
  • Following our recent S&P activity, our average LPG fleet age (including our JV vessels) is 9 years.
  • Voyage revenues of $37.3 million in Q4 ’20, an increase of $2.1 million compared to Q4 ’19 mostly due to a 50% reduction of bareboat activity where generated revenue is inherently lower and an increase of time charter revenues stemming from our larger LPG vessels.
  • Net loss of $0.7 million in Q4 20’ corresponding to a net loss per share of $0.02 compared to net income of $0.5 million in Q4 ’19 corresponding to an EPS of $0.01.
  • Adjusted EBITDA of $13.7 million in Q4 20’ compared to $15.1 million in Q4 ’19.
  • Low gearing, as debt to assets stands at 37.3%, and quarter- over- quarter reduction in finance costs by $1.4 million.
  • Total cash, including restricted cash, of $53.0 million as of December 31, 2020 – increased compared to the previous quarter end following the post-delivery financing of the LPG newbuilding Eco Alice.
  • Adjusted net income of  $1.1 million for Q4 20’ corresponding to an Adjusted EPS of $0.03 while for the year 2020 our Adjusted net income was $16.9 million corresponding to an Adjusted EPS of $0.44 – a  good performance given difficult market conditions.

Twelve Months 2020 Results:

  • Revenues for the twelve months ended December 31, 2020 amounted to $145.0 million, an increase of $0.7 million, or 0.5%, compared to revenues of $144.3 million for the twelve months ended December 31, 2019, due to higher revenues stemming from our time charter contracts along with a  reduction of our bareboat activity, partially offset by the reduction of our fleet calendar days by 6.3% and the significant reduction in the calendar days of our charter-in vessels.
  • Voyage expenses and vessels’ operating expenses for the twelve months ended December 31, 2020 were $14.1 million and $53.3 million, respectively, compared to $17.0 million and $49.6 million for the twelve months ended December 31, 2019. The $2.9 million decrease in voyage expenses is mostly attributed to the 18.7% reduction in bunker costs  due to low prevailing oil prices. The $3.7 million increase in vessels’ operating expenses is mostly due to fewer vessels on bareboat and increased crew costs faced due to the COVID-19 pandemic.
  • Drydocking costs for the twelve months ended December 31, 2020 and 2019 were $3.6 million and $1.1 million, respectively. The costs for the twelve months ended December 31, 2020 mainly related to the drydocking of seven  vessels, while the costs for the same period of last year related to the docking survey of one small LPG and the drydocking of two LPG vessels.
  •  General and Administrative expenses for the twelve months ended December 31, 2020 amounted to $2.3 million compared to $3.7 million for the same period of last year. This decrease is mainly attributed to the fact that for the twelve months ended December 31, 2019 share based compensation expense was incurred, which was not the case for the twelve months ended December 31, 2020 since all the shares awarded under our equity compensation plan vested in August 2019.
  • Depreciation for the twelve months ended December 31, 2020, was $37.5 million, a $0.2 million decrease from $37.7 million for the same period of last year, due to the decrease in the average number of our vessels.
  •  Impairment loss for the twelve months ended December 31, 2020 was $3.9 million and related to four of our oldest vessels. The impairment loss for the year ended December 31, 2019 was $1.0 million and related to two vessels.
  •  Interest and finance costs for the twelve months ended December 31, 2020 and 2019 were $14.1 million and $21.0 million, respectively. The $6.9 million decrease from the same period of last year is mostly due to the decline of LIBOR rates in 2020, along with the decrease of our indebtedness.
  • Equity gain in joint ventures for the twelve months ended December 31, 2020 and 2019 was $2.7 million and $0.5 million, respectively. The $2.2 million increase from the same period of last year is mainly due to the profitability of the three secondhand (2010 built) 35,000 cbm medium gas carriers which operated under a joint venture arrangement since Q1 ‘20.
  • As a result of the above, the Company reported net income for the twelve months ended December 31, 2020 of $12.0 million, compared to net income of $2.1 million for the twelve months ended December 31, 2019. The weighted average number of shares outstanding as of December 31, 2020 and 2019 was 38.4 million and 39.8 million, respectively. Earnings per share for the twelve months ended December 31, 2020 amounted to $0.31 compared to earnings per share of $0.05 for the same period of last year.
  • Adjusted net income was $16.9 million, or $0.44 per share, for the twelve months ended December 31, 2020 compared to adjusted net income of $4.3 million, or $0.11 per share, for the same period of last year.
  • EBITDA for the twelve months ended December 31, 2020 amounted to $63.4 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
  • An average of 41.6 vessels were owned by the Company during the twelve months ended December 31, 2020, compared to 42.6 vessels for the same period of 2019.
  • As of December 31, 2020, cash and cash equivalents amounted to $38.2 million and total debt amounted to $351.8 million. During the twelve months ended December 31, 2020 debt repayments amounted to $41.8 million.

Fleet Update Since Previous Announcement

The Company announced the conclusion of the following chartering arrangements:  

  • A  three year time charter extension for its 2014 built LPG carrier, the Eco Elysium, to a Major Energy Conglomerate until June 2024.

§     A  two year time charter for its 2011 built LPG carrier, the Gas Myth, to a Major International Chemical Producer until January 2023.

§     A one year time charter for its 2014 built LPG carrier, the Eco Corsair, to an Oil Major until February 2022.

§     A one year time charter for its 2015 built LPG carrier, the Eco Enigma, to a Major International Trading House until January 2022.

§     A one year time charter for its 2014 built LPG carrier, the Eco Royalty, to an Oil Major until February 2022.

§     A one year time charter for its 2014 built LPG carrier, the Eco Loyalty, to an Oil Major until February 2022.

§     A six months time charter for its 2008 built Product Tanker, the Clean Thrasher, to an Energy Trader until August 2021.

§     A four months time charter for its 2016 built LPG carrier, the Eco Nical, to an International LPG Trader until June 2021.

§     A three months time charter for its 2015 built LPG carrier, the Eco Czar, to an International LPG Trader until May 2021.

§     A two months time charter for its 2016 built LPG carrier, the Eco Dominator, to an International LPG Trader until March 2021.

With these charters, the Company has total contracted revenues of approximately $81 million.

Total anticipated fleet days of our fleet is approximately 50% covered for the remainder of 2021.

Board Chairman Michael Jolliffe Commented

The year 2020 will always be remembered globally for precarious reasons and the shipping world was not spared. With regards to the segment we operate in, LPG demand marked a decline and rates for the majority of the sub-segments we operate in were soft- particularly during the second half of 2020. The tanker market was affected as well as, currently, rates are at very low levels in the shipping cycle. On top of that, we were hit with the bankruptcy of one of our charterers which had to redeliver four of our ships earlier than was agreed.

Nevertheless, with an Adjusted Net Income of almost $17 million, corresponding to an Adjusted EPS of $0.44 generated in 2020, we feel positive for 2021.

Looking ahead, we recognize that market turbulence due to the COVID-19 pandemic might last – possibly even throughout the whole of 2021. However, we can leverage upon our strengths including our solid cash base and balance sheet, our low gearing and the significant operating leverage we have, as including our JV vessels we operate a fleet of 50 ships.

As our shares trade at low levels, we strongly believe that this is an opportunity for potential investors as we have a long standing record of a sturdy and prudent company with a strong position in the segment in which we operate in.

Slides and audio webcast:

There will also be a live and then archived webcast of the conference call, through the STEALTHGAS INC. website (www.stealthgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About STEALTHGAS INC.

StealthGas Inc. is a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry.  StealthGas Inc. has a fleet of 50 vessels. The fleet is comprised of 46 LPG carriers, including eight Joint Venture vessels. These LPG vessels have a total capacity of 436,692 cubic meters (cbm). The Company also owns three M.R. product tankers and one Aframax oil tanker with a total capacity of 255,804 deadweight tons (dwt). StealthGas Inc.’s shares are listed on the Nasdaq Global Select Market and trade under the symbol “GASS.”

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, or impact or duration of the COVID-19 pandemic and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although STEALTHGAS INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, STEALTHGAS INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in STEALTHGAS INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by STEALTHGAS INC. with the U.S. Securities and Exchange Commission.

Fleet List and Fleet Deployment                        

For information on our fleet and further information:

Visit our website at www.stealthgas.com

Company Contact:

Fenia Sakellaris

STEALTHGAS INC.

011-30-210-6250-001
E-mail: info@stealthgas.com

Fleet Data:

The following key indicators highlight the Company’s operating performance during the year ended December 31, 2019 and December 31, 2020.

FLEET DATAQ4 2019Q4 202012M 201912M 2020
Average number of vessels (1)41.0042.1042.5741.56
Period end number of owned vessels in fleet41414141
Total calendar days for fleet (2)3,9523,87316,32815,292
Total voyage days for fleet (3)3,9093,81316,23015,079
Fleet utilization (4)98.9%98.5%99.4%98.6%
Total charter days for fleet (5)3,2992,70013,54112,442
Total spot market days for fleet (6)6101,1132,6892,637
Fleet operational utilization (7)97.9%93.6%97.5%96.1%

1) Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

2) Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.

3) Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.

4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.

5) Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.

6) Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.

7) Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days (excluding commercially idle days) by fleet calendar days for the relevant period.

Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:

Adjusted net income represents net income/(loss) before (gain)/loss on derivatives excluding swap interest received/(paid), net loss on sale of vessels, gain on deconsolidation of subsidiaries, impairment loss and share based compensation. EBITDA represents net income/(loss) before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income/(loss) before interest and finance costs, interest income, depreciation, share based compensation, impairment loss, (gain)/loss on derivatives, net loss on sale of vessels and gain on deconsolidation of subsidiaries.

Adjusted EPS represents Adjusted net income divided by the weighted average number of shares. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries.  In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.

EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance.

(Expressed in United States Dollars,
except number of shares)
Fourth Quarter Ended December 31,Twelve Months Period Ended December 31,
 2019202020192020
Net income/(loss) – Adjusted Net Income
Net income/(loss)531,281(740,037)2,093,12411,984,485
Less/Plus (gain)/loss on derivatives(18,852)29,565107,55050,976
Plus/Less swap interest received/(paid)16,048(24,847)148,100(89,537)
Plus net loss on sale of vessels1,134,854485,5161,134,854
Less gain on deconsolidation of subsidiaries(145,000)
Plus impairment loss993,916714,895993,9163,857,307
Plus share based compensation611,644
Adjusted Net Income1,522,3931,114,4304,294,85016,938,085
Net income/(loss) – EBITDA
Net income/(loss)531,281(740,037)2,093,12411,984,485
Plus interest and finance costs4,471,6933,136,66620,978,06514,129,893
Less interest income(171,115)(14,715)(846,271)(167,794)
Plus depreciation9,321,9229,456,60637,693,73337,455,093
EBITDA14,153,78111,838,52059,918,65163,401,677
Net income/(loss) – Adjusted  EBITDA
Net income/(loss)531,281(740,037)2,093,12411,984,485
Less/Plus (gain)/loss on derivatives(18,852)29,565107,55050,976
Plus net loss on sale of vessels1,134,854485,5161,134,854
Less gain on deconsolidation of subsidiaries(145,000)
Plus impairment loss993,916714,895993,9163,857,307
Plus share based compensation611,644
Plus interest and finance costs4,471,6933,136,66620,978,06514,129,893
Less interest income(171,115)(14,715)(846,271)(167,794)
Plus depreciation9,321,9229,456,60637,693,73337,455,093
Adjusted EBITDA15,128,84513,717,83461,972,27768,444,814
EPS – Adjusted EPS
Net income/(loss)531,281(740,037)2,093,12411,984,485
Adjusted net income1,522,3931,114,4304,294,85016,938,085
Weighted average number of shares39,710,10337,858,43739,800,43438,357,893
EPS – Basic and Diluted0.01(0.02)0.050.31
Adjusted EPS0.040.030.110.44

StealthGas Inc.

Unaudited Consolidated Statements of Operations

(Expressed in United States Dollars, except for number of shares)

Quarters Ended December 31, Twelve Month Periods Ended December 31,
    2019 2020 2019 2020
    
Revenues
Revenues35,164,69837,294,459144,259,312145,003,021
Expenses
Voyage expenses3,676,9804,850,65915,201,97812,259,795
Voyage expenses – related party433,365467,1761,788,5431,799,209
Charter hire expenses1,234,019  —6,268,988318,606
Vessels’ operating expenses12,348,36914,407,05348,619,59452,344,721
Vessels’ operating expenses – related party240,000253,500966,500950,500
Drydocking costs360,289936,3961,094,3063,640,327
Management fees – related party1,384,1901,493,3415,730,9105,599,351
General and administrative expenses602,685657,4833,706,3202,301,308
Depreciation9,321,9229,456,60637,693,73337,455,093
Impairment loss993,916714,895993,9163,857,307
Net loss on sale of vessels  —1,134,854485,5161,134,854
Total expenses  30,595,735 34,371,963 122,550,304 121,661,071
           
Income from operations 4,568,963 2,922,496 21,709,008 23,341,950
Other (expenses)/income
Interest and finance costs(4,471,693)(3,136,666)(20,978,065)(14,129,893)
Gain on deconsolidation of subsidiaries  —  —145,000  —
Gain/(loss) on derivatives18,852(29,565)(107,550)(50,976)
Interest income171,11514,715846,271167,794
Foreign exchange gain/(loss)10,822(51,982)(8,235)(54,374)
Other expenses, net  (4,270,904) (3,203,498) (20,102,579) (14,067,449)
           
Income/(Loss) before equity in income of investees298,059(281,002)1,606,4299,274,501
Equity gain/(loss) in joint ventures 233,222(459,035) 486,695 2,709,984
Net Income/(Loss)  531,281 (740,037) 2,093,124 11,984,485
Earnings/(Loss) per share
– Basic & Diluted0.01(0.02)0.050.31
Weighted average number of shares
-Basic & Diluted39,710,10337,858,43739,800,43438,357,893

StealthGas Inc.

Unaudited Consolidated Balance Sheets

(Expressed in United States Dollars)

December 31, December 31,
     2019 2020
Assets
Current assets
Cash and cash equivalents68,465,34238,242,411
Trade and other receivables4,217,1013,602,764
Other current assets118,246309,608
Claims receivable314,217120,547
Inventories2,447,7033,687,098
Advances and prepayments749,681782,125
Restricted cash1,589,7681,308,971
Fair value of derivatives30,381
Total current assets  77,932,439 48,053,524
Non current assets
Advances for vessel under construction2,988,9036,539,115
Operating lease right-of-use assets473,132  —
Vessels, net835,152,403832,335,059
Other receivables286,91526,427
Restricted cash12,065,22213,488,820
Investments in joint ventures25,250,17343,177,657
Deferred finance charges  —385,705
Fair value of derivatives39,744  —
Total non current assets 876,256,492 895,952,783
Total assets  954,188,931 944,006,307
Current liabilities
Payable to related parties7,043,1214,659,861
Trade accounts payable9,032,6909,974,751
Accrued and other liabilities6,002,0793,773,499
Operating lease liabilities473,132
Customer deposits968,000968,000
Deferred income2,843,9942,995,657
Fair value of derivatives37,567141,447
Current portion of long-term debt40,735,55640,547,892
Total current liabilities 67,136,139 63,061,107
Non current liabilities
Fair value of derivatives2,618,2505,099,464
Long-term debt325,247,902 311,249,321
Total non current liabilities 327,866,152 316,348,785
Total liabilities  395,002,291 379,409,892
Commitments and contingencies    
Stockholders’ equity
 Capital stock445,496431,836
Treasury stock(24,361,145)(25,373,380)
Additional paid-in capital502,419,122499,564,087
Retained earnings82,942,21094,926,695
Accumulated other comprehensive loss(2,259,043)(4,952,823)
Total stockholders’ equity 559,186,640 564,596,415
Total liabilities and stockholders’ equity954,188,931 944,006,307

StealthGas Inc.

Unaudited Consolidated Statements of Cash Flows

(Expressed in United States Dollars)

  Twelve Month Periods Ended December 31,
  2019 2020
Cash flows from operating activities
Net income for the year2,093,12411,984,485
Adjustments to reconcile net income to net cash
  provided by operating activities:
Depreciation37,693,73337,455,093
Amortization of deferred finance charges885,191698,364
Amortization of operating lease right-of-use assets1,572,943473,132
Share based compensation611,644  —
Change in fair value of derivatives255,650(38,561)
Equity gain in joint ventures(486,695)(2,709,984)
Impairment loss993,9163,857,307
Net loss on sale of vessels485,5161,134,854
Gain on deconsolidation of subsidiaries(145,000)  —
Changes in operating assets and liabilities:
(Increase)/decrease in
Trade and other receivables(1,506,590)874,825
Other current assets16,055(191,362)
Claims receivable(1,307,763)193,670
Inventories617,468(1,239,395)
Changes in operating lease liabilities(1,572,943)(473,132)
Advances and prepayments339,858(32,444)
Increase/(decrease) in
Balances with related parties(5,845,771)1,617,032
Trade accounts payable(1,316,668)761,193
Accrued liabilities(217,409)(2,403,644)
Deferred income(2,347,660) 151,663
Net cash provided by operating activities30,818,599 52,113,096
Cash flows from investing activities
Insurance proceeds993,546  —
Proceeds from sale of interests in subsidiaries20,720,975  —
Vessels’ acquisitions and advances for vessels under construction(2,988,903)(48,121,422)
Proceeds from sale of vessels, net18,721,1235,264,768
Investment in joint ventures(11,322,600)(41,998,500)
Return of investments by joint ventures7,363,14726,781,000
Advances to joint ventures(5,083,919)(29,245)
Advances from joint ventures5,083,91929,245
Net cash provided by/(used in) investing activities33,487,288 (58,074,154)
Cash flows from financing activities
Stock repurchase(1,837,617)(3,880,930)
Deferred finance charges paid(477,201)(538,004)
Advances from joint ventures4,958,2501,841,380
Advances to joint ventures(5,841,672)
Customer deposits paid(368,000)  —
Loan repayments(97,371,978)(41,804,846)
Proceeds from long-term debt33,480,00027,105,000
Net cash used in financing activities(61,616,546) (23,119,072)
Net increase/(decrease) in cash, cash equivalents and restricted cash2,689,341(29,080,130)
Cash, cash equivalents and restricted cash at beginning of year79,430,99182,120,332
Cash, cash equivalents and restricted cash at end of year82,120,332 53,040,202
Cash breakdown
Cash and cash equivalents68,465,34238,242,411
Restricted cash, current1,589,7681,308,971
 Restricted cash, non current12,065,222 13,488,820
Total cash, cash equivalents and restricted cash shown in the statements of cash flows82,120,332 53,040,202

[1] EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release.

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